Mactaggart & Mickel has been awarded two new contracts as it moves into new markets.

The family-owned housebuilder is expanding into social housing and external contracting for the projects which will be worth around £3million to it.

The first is for 22 affordable apartments for Dunedin Canmore Housing Association on a site at Lochrin Basin in Edinburgh.

Those properties will be one or two bedroom and work on the site, which will include a landscaped courtyard, car parking and bike storage, is due to begin this summer.

Work is also to start on six semi-detached bungalows at Erskine Hospital in Renfrewshire for Erskine Development Limited.

Ed Monaghan, managing directorofMactaggart& Mickel,said:"It's no secret that the market has thrown up many challenges for homebuilders over the past few months, which is why this diversification is such good news for Mactaggart & Mickel.

"We have worked hard to secure these major contracts and it's a welcome boost to the dedication of our staff that we are able to announce our first venture into social housing - the first of many such projects in the pipeline.

"We are committed to working with registered social landlords and others to create new affordable housing communities.

"We would like to continue this new partnership with Dunedin Canmore Housing Association in developing our existing Edinburgh land holdings to deliver the city's much needed affordable housing provision."

Ewan Fraser, chief executive of Dunedin Canmore Housing Association, said: "It is a real advantage for Dunedin Canmore to be working in partnership with Mactaggart & Mickel who have a reputation for building very high quality houses.

"It is even better that we are working on a regeneration project in the centre of Edinburgh where there is a high demand for affordable housing.

"We are also very pleased to be starting another new project with a private house builder who can keep together their skilled workforce."